Kerry Packer once famously declared that any Australian who doesn’t try and minimise their taxable income needs their head read. Well it turns out that Scott Morrison doesn’t want to run the risk that any of us had forgotten Kerry’s lesson and wants to make sure that we have the extra incentive to do exactly that.
The popular $20,000 instant asset write-off for small business entities, which enables small businesses to immediately write-off depreciable assets costing less than $20,000, is now accessible to 90,000 more businesses. Up until about six weeks ago, only businesses turning over LESS than 2 million qualified. However a deal done between the Government and Senator Nick Xenophon to pass the enterprise tax Bill, has seen the 20K instant asset write-off extended in more ways than one. Not only has the concession been extended to another 90,000 businesses, but it is running for an extra 12 months!
The 20K tax off-set was due to expire and return to the one thousand dollar limit on 30 June 2017. Instead, profitable business owners can now enjoy this for another year. It is important to note that the offset probable wont work for you if you run your business at a loss. Check with your accountant regarding your circumstances, but don’t waste time, get them on the blower today and find out your circumstances. Anything you want to get the 100% tax write-off needs to be purchased before 30 June this year if you want to do the write-off this year. For more information on this there is a pretty good outline of the technicalities on the Hayes Knight Accountancy website http://www.hayesknight.com.au/90000-businesses-can-access-20k-instant-asset-write-off-year/
Now onto your promised #TaxHack, which is only going to work for you if you made a profit this year.
So, if your business made profits this year, you will be taxed on them.
In fact, Scott Morrison is going to take a nice 30% chunk of those AUD’s.
Oh, and if you pass that income to yourself, your taxation can be EVEN HIGHER.
So how do you avoid giving all those sweet, sweet, hard earned money to the Australian Taxation Office?
If you spend that money on expenses, like marketing, then you can lower your taxable income, since you are only taxed on profits.
That’s why right now, every smart, profitable business owner is DUMPING all their profits into pre-purchasing as much as they can for next year to lower their 2017 tax bill.
Kerry Packer knew how it worked.
In fact, according to Forbes, more than 70% of US businesses don’t pay Corporate Income tax because they know this!
You can essentially give money to yourself instead of being taxed on it. Well kind of. Actually, what I want you to do, is give it the money to me by pre-puchasing web services, hosting , press releases or SEO.